The British pound dropped to $1.3218, from the two-month highs of $1.3295 hit on Thursday, following the rejection of May’s Brexit Plan by the EU leaders and ahead of her forthcoming statement.
Britain is due to leave the European Union on March 29. A no-deal Brexit less than six months before Britain leaves the European Union is hardly an option. Prime Minister’s Brexit strategy is subject to harsh criticism both by friends and foes. May’s business-friendly scenario is unpopular even in the UK.
Further, EU leaders warned May on Thursday that she must give ground on trade and the Irish border by November. Otherwise, EU is ready to deal with Britain crashing out.
British Media characterized May’s Brexit proposals dead on Friday following the “humiliation” against her plans during the EU summit. The EU leaders said they would push for a Brexit deal next month, rejecting “Chequers deal”.
Britain will leave the EU without a deal unless EU leaders soften their position on the Irish border according to the UK Minister of Transport.
The UK Prime Minister will make a statement on Brexit talks, later today, after EU rejects her plans.
Forex Market – British Pound is down
The Dollar traded higher 0.1% against its major traded rivals but still faces its biggest weekly drop since February.
The Sterling dropped more than 1.5% following the rejection of May’s Brexit Plan by the EU leaders and ahead of her forthcoming statement. Against the euro, the pound weakened 1.1%.
The Australian dollar, often seen as a proxy for China risk because of its reliance on Chinese demand for its exports, edged higher to a three-week peak of $0.7297.
Oil prices soared ahead of OPEC meeting and following U.S. President Trump’s provocation to OPEC to “get prices down now!”. OPEC’s meeting agenda focus on production increases as US sanctions over Iran limit the output.
Brent crude futures increased by 85 cents a barrel while U.S. crude futures gained 55 cents from their last close. Brent is close to 4-year highs, close to $80 a barrel.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.